As the U.S. government shutdown stretches into its 38th day, the Senate prepares to vote on a funding bill to temporarily restore operations. Meanwhile, the much-anticipated crypto market structure bill — once expected to progress before year’s end — remains frozen amid political gridlock and economic uncertainty.
Government Shutdown Overshadows Legislative Progress
The ongoing government shutdown, now over a month old, has brought much of Washington’s work to a halt. On Friday, the U.S. Senate’s agenda included a vote on a continuing resolution from the House of Representatives that could temporarily reopen the government and provide short-term funding.
However, with deep divisions between parties, it remains uncertain whether the measure will achieve the necessary 60 votes in the Senate. Several previous efforts to reach a funding agreement have failed, leaving key federal agencies paralyzed and workers either furloughed or unpaid.
Crypto Market Structure Bill Stuck in Limbo
As lawmakers grapple with the shutdown, progress on the long-awaited digital asset market structure bill — designed to define the regulatory framework for cryptocurrencies in the U.S. — has effectively stalled. The bill, passed in the House as the CLARITY Act and known in the Senate as the Responsible Financial Innovation Act, aims to bring oversight and stability to the digital asset ecosystem.
Yet, despite bipartisan acknowledgment of its importance, the crypto bill has slipped down the legislative priority list. Most congressional efforts are now focused on ending the shutdown, sidelining broader financial reform initiatives until government operations are restored.
Lawmakers Paid, Agencies Struggle
While federal employees across numerous departments continue to face furloughs or work without pay, members of Congress remain on payroll. The optics have drawn criticism from the public and watchdog groups, particularly as the shutdown nears historic length.
This situation has further delayed legislative debates beyond the shutdown issue — including those involving crypto regulation. Even lawmakers supportive of blockchain innovation have been forced to redirect their attention toward resolving the government’s immediate funding crisis.
Political Divides Deepen as Healthcare Sparks Tension
At the heart of the deadlock lies disagreement over healthcare spending and social program funding. Democrats have demanded the continuation of healthcare subsidies and the reversal of cuts implemented in a July funding bill, while Republicans insist on broader fiscal constraints.
These unresolved disputes have prevented any significant bipartisan breakthrough, complicating prospects for unrelated bills — including the digital asset market framework. Until a resolution is reached, both financial reform and crypto regulation remain low on the legislative agenda.
Crypto Bill’s 2026 Goal Now in Doubt
Wyoming Senator Cynthia Lummis, a leading advocate for crypto regulation, outlined an ambitious roadmap earlier this year. She projected the bill would pass through the Senate Banking Committee by September, the Agriculture Committee by October, and become law by 2026.
However, the current shutdown has disrupted that momentum. With Congress gridlocked and the holidays approaching, the timeline appears increasingly unrealistic. Despite bipartisan interest, Washington’s political climate may delay the nation’s comprehensive crypto regulation until well into next year.